Like a skilled assassin- a Bank Levy strikes without notice. One day your debit card will be working fine, the next day your card will be declined while you're buying your groceries. The IRS Bank Levy can be devastating and makes normal day to day living impossible.
Letter after Letter:
If you're reading this, you may have received some threatening letters from the IRS about your tax debt. If you receive a letter entitled “Final Notice of Intent to Levy” the IRS is letting you know that they intend to Levy your Bank Account. This means that they are in essence, freezing your account and not allowing you access to it. This is one of the most powerful tools the IRS uses to collect their debt.
When the IRS freezes your account, they give you 21 days before they seize all the money out of your account. Take advantage of this small window of time and take what steps it takes to make sure Uncle Sam doesn't keep your money.
Ways To Stop A Bank Levy:
Hardship Plan: Send a letter to the IRS with evidence proving that if they Levy your Bank Account you will not be able to meet the standards of basic living.
Payment Plan: Work out an affordable payment plan with the IRS that will have you paying a monthly amount on your debt. The Bank Levy will be removed as long as you continue to pay monthly and on time.
Negotiate a Settlement: If you can absolutely prove that you will never be able to pay the full amount of your tax debt, you can get a settlement with the IRS to have your debt paid in one lump sum. If you qualify, with the help of a tax professional, this could become a reality.
It's your choice:
You can let the IRS seize the funds in your bank account, leaving you penniless- or you can act fast and make the right choices. Take these tips and get on the fast track to being debt free.
Labels: Installment Agreement